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    BMY
    Earnings call· Dec 2025(Q4 FY25)

    BRISTOL MYERS SQUIBB Q4 FY25 earnings call BMY

    Feb 5, 2026 Source

    Executive summary

    Bristol-Myers Squibb Q4 FY25 – Strong Growth Portfolio Performance and Robust Pipeline Catalysts

    Bristol-Myers Squibb concluded FY25 with strong execution, driven by its growth portfolio which nearly offset legacy product declines. The company is poised for a data-rich period in 2026 with multiple pivotal readouts, aiming to deliver sustainable long-term growth. Strategic cost savings and a balanced capital allocation approach support continued investment in the pipeline and business development.

    Highlights

    4
    • Growth portfolio revenue increased 15% year-over-year in Q4 and 17% for the full year, reaching $7.4 billion in Q4.

    • Opdualag, Breyanzi, and Camzyos each contributed over $1 billion in sales for the full year, while Reblozyl delivered over $2 billion.

    • The company delivered over $1 billion in cost savings in 2025, on track for an additional $1 billion over 2026-2027.

    • Eliquis revenue increased 6% to nearly $3.5 billion in Q4, driven by demand growth and market share gains, with US revenue up 4%.

    Concerns

    3
    • Legacy portfolio revenue declined by roughly $4 billion for the full year due to ongoing loss of exclusivity (LOE) impacts.

    • Gross margin declined 210 basis points in Q4 to 71.9%, primarily driven by product mix, notably Eliquis and Revlimid.

    • Eliquis sales are expected to step down by $1.5 billion to $2 billion from 2026 to 2027 due to anticipated generic entries, particularly in the EU.

    Guidance & targets

    9
    CategoryTargetConfidence
    Full-year 2026 revenue
    $46 billion to $47.5 billion
    high materiality
    High
    Full-year 2026 legacy portfolio revenue decline
    between 12% and 16%
    medium materiality
    High
    Full-year 2026 Eliquis growth
    10% to 15%
    medium materiality
    High
    Full-year 2026 gross margin
    69% to 70%
    medium materiality
    High
    Full-year 2026 total operating expenses
    approximately $16.3 billion
    medium materiality
    High
    Full-year 2026 OI&E expense
    approximately $700 million
    medium materiality
    High
    Full-year 2026 tax rate
    approximately 18%
    medium materiality
    High
    Full-year 2026 non-GAAP earnings per share
    $6.05 to $6.35
    high materiality
    High
    Eliquis sales step-down
    $1.5 billion to $2 billion
    high materiality
    High

    Segment performance

    10
    SegmentRevenueYoYQoQMargin
    Growth Portfolio
    Represented close to 60% of total revenue in Q4. Full year growth was 17%.
    $7.4 billion15%
    Opdivo
    Driven by new indications and continued share growth within the first-line non-small cell lung cancer setting.
    nearly $2.7 billion7%
    Qvantig
    Launch continued to progress well.
    $133 million
    Opdualag
    Driven by demand in the U.S., where it remains a standard of care in first-line melanoma.
    strong double-digit growth
    Reblozyl
    Performance reflecting solid uptake across first- and second-line MDS-associated anemia patients.
    21%
    Breyanzi
    Driven by its desirable profile and continued strong demand across its approved indications.
    47%
    Eliquis
    Driven by demand growth and market share gains.
    US revenue growth: 4%
    nearly $3.5 billion6%
    Camzyos
    Benefiting from continued demand growth globally, with expanded prescribing physicians in the U.S. and launches in over 50 countries outside the U.S.
    $353 million57%
    Sotyktu
    Global revenue growth.
    3%
    Cobenfy
    Continued steady uptake among prescribers and patients, surpassing all schizophrenia comparators and relevant analogs in the first year of launch.
    $51 million

    Operational metrics

    19
    Cost savings achieved
    $1 billion
    2025

    Part of a $2 billion strategic productivity initiative, with the remaining $1 billion expected over 2026 and 2027.

    Gross margin
    71.9%declined 210 bps YoY
    Q4 FY25

    Decline driven primarily by product mix.

    Effective tax rate
    22.1%vs 19.9% in Q4 FY24
    Q4 FY25

    Reflects the onetime nontax deductible in-process R&D charge related to the Orbital acquisition.

    Non-GAAP diluted earnings per share
    $1.26
    Q4 FY25

    Includes a net charge related to in-process R&D and licensing income totaling $0.60 per share.

    Non-GAAP diluted earnings per share
    $6.15
    FY25

    Includes a net charge related to in-process R&D and licensing income totaling $1.40 for the full year.

    Cash equivalents and marketable securities
    $11 billion
    as of Dec 31, 2025

    Strong financial position.

    Debt paydown
    $10 billion
    completed

    Targeted debt paydown completed ahead of schedule.

    Eliquis NRx share
    75%
    current

    In the U.S., contributing to continued strong performance.

    Cobenfy TRx since launch
    over 100,000
    since launch

    Surpassed all relevant schizophrenia analogs.

    Cobenfy Medicaid and Medicare access
    100%
    current

    Very strong access.

    Cobenfy commercial access
    70%
    current

    Approaching 70% commercial access.

    Opdualag market share
    30%
    current

    In first-line metastatic melanoma, approaching 4 years post launch.

    BMS market share (metastatic melanoma)
    65%
    current

    Total market share in metastatic melanoma.

    Opdivo subcu patient conversion target
    30% to 40%
    by 2028

    Target for converting IV business to subcutaneous formulation ahead of LOE.

    IPF/PPF 5-year overall survival rate
    <50%
    current

    Prognosis for progressive pulmonary diseases, highlighting significant unmet need.

    Admilparant Phase II FVC decline reduction (IPF)
    60%
    Phase II

    Reduction in the risk of decline of FVC in idiopathic pulmonary fibrosis.

    Admilparant Phase II FVC decline reduction (PPF)
    >70%
    Phase II

    Reduction in the risk of decline of FVC in progressive pulmonary fibrosis.

    Eliquis US business share
    70%
    current

    Roughly 70% of the total Eliquis business is in the U.S.

    Multiple Myeloma patients treated in community
    70% to 80%
    current

    Highlighting the target patient population for CELMoDs.

    Industry KPIs

    9
    MetricValueDetails
    Prescription volumeover 100,000TRxs
    Pricing policy impact
    Product franchise net sales
    Therapeutic drug market share>30%%
    Price volume mix decomposition
    Geographic regional revenue growth
    Clinical trial efficacy safety data
    Patent expiry loe biosimilar erosion
    Business development capacity deal size appetite

    Deals & partnerships

    2
    BioNTechPartnership

    Partnership for pumitamig development, with 3 additional planned studies and 8 registrational studies expected by year-end.

    Orbital TherapeuticsAcquisition

    Acquisition mentioned in context of in-process R&D charge and investment in development programs.

    Risks & headwinds

    4
    Legacy portfolio revenue declineFY25

    roughly $4 billion for the full year

    Mitigation: Growth portfolio nearly offset this decline.

    Gross margin compressionQ4 FY25

    declined 210 basis points to 71.9%

    Mitigation: Ongoing cost savings program and strategic investments.

    Eliquis sales step-down2026 to 2027

    $1.5 billion to $2 billion

    Mitigation: Reevaluated pricing strategy for 2026 to maximize current revenue; EU patent expirations are a known factor.

    Orencia biosimilar competition

    Dr. Reddy's Labs has posted an opportunity to file

    Mitigation: Manufacturing challenges for complex products like Orencia are noted, expecting continued cash flow from the product.

    Q&A highlights

    7

    With numerous Phase III pivotal catalysts in 2026, which areas (CELMoDs, milvexian, admilparant) offer the most upside, and how should investors position for these readouts?

    Management highlighted the strong growth of current products and the upcoming 10+ pivotal readouts in 2026. They expressed high confidence in the CELMoD program (iberdomide, mezigdomide, arlo-cel in myeloma), admilparant in IPF/PPF (citing strong Phase II FVC reduction data), and milvexian (potential best-in-class in SSP and unique Factor XI in AFib).

    The things that I think stand out for me, you've already mentioned them actually. The CELMoD program is beginning to bear fruit. We've already demonstrated PFS data for iberdomide. We'll see follow-up data on that with PFS this year.

    asked by Seamus Fernandez · answered by Christopher Boerner

    2 min read6 chapters

    Detailed Narrative

    01

    Growth Portfolio Momentum

    The growth portfolio, including Opdualag, Breyanzi, Camzyos, and Reblozyl, demonstrated strong performance, growing 15% in Q4 and 17% for the full year, reaching $7.4 billion in Q4. These products are early in their life cycles and are expected to strengthen the foundation for long-term growth, nearly offsetting a $4 billion decline from the legacy portfolio. Cobenfy and Qvantig also showed steady progress, with Cobenfy surpassing all schizophrenia comparators in its first year of launch.

    02

    Pipeline Catalysts and Strategic Focus

    BMS anticipates a data-rich period in 2026 with six potential new product readouts, including milvexian in atrial fibrillation and secondary stroke prevention, admilparant in idiopathic pulmonary fibrosis, iberdomide, mezigdomide, and arlo-cel in relapsed/refractory multiple myeloma, and RYZ101 in GEP-NETs. Additionally, pivotal line extension readouts for Sotyktu in lupus and Cobenfy in Alzheimer's disease psychosis are expected. The company aims to introduce over 10 new medicines and 30 launch opportunities by 2030.

    03

    Cost Savings and Operational Efficiency

    The company achieved over $1 billion in cost savings in 2025 as part of its $2 billion strategic productivity initiative, with the remaining $1 billion expected over 2026-2027. These savings provide flexibility to reinvest in growth drivers and new development programs, such as the pumitamig partnership and Orbital Therapeutics program, while reducing overall operating expenses to approximately $16.3 billion in 2026.

    04

    Eliquis Dynamics and Pricing Strategy

    Eliquis continued strong performance with 6% revenue growth in Q4, driven by demand and market share gains, with US revenue up 4%. A reevaluated pricing strategy, including a 40% WACC reduction and removal of Medicare Part D liability, is expected to drive 10-15% growth in 2026 by eliminating inflationary penalties and expanding access. However, a $1.5 billion to $2 billion step-down is projected for 2027 due to anticipated generic entries in major ex-U.S. markets, particularly with EU patents expiring late 2026.

    05

    Business Development Priorities

    Business development remains a top priority, with a focus on opportunities that build breadth and depth within existing therapeutic areas where BMS can add scientific, clinical, and commercial value. The company is not 'chasing deals' but remains opportunistic, leveraging its strong financial position to pursue high-return opportunities, including in neuroscience, where it has shown a willingness to expand its presence.

    06

    Milvexian and LPA1 Development

    The milvexian AFib study (Librexia) has enrolled over 20,000 patients and continues to be endorsed by the DSMB for progression, with confidence in achieving non-inferiority on efficacy vs. Eliquis and superiority on bleeding. Admilparant (LPA1) for IPF/PPF is progressing well in Phase III with 120mg and 60mg doses, showing manageable hypotension risk and potential for improved efficacy and tolerability compared to existing therapies, which often lead to treatment abandonment due to GI issues.

    AI-generated summary of the company’s earnings call. Not investment advice.